Bonds are types of fixed-income securities issued by corporations, governments, and organizations to investors like you in exchange for periodic interest payments (monthly/ quarterly/ annually). Your principal amount is repaid at maturity.
Essentially, bonds act as loans, providing you with stable returns while helping issuers raise funds for projects, operations, and growth. They are less risky than equities, making them ideal for stable investments.

Bonds come with steady market-competitive returns while carrying lesser risk than equities, offering a cushion to your investment portfolio from market volatility. They are excellent investment options to diversify your portfolio. They offer consistent income in the form of interest payments while also aiding in capital preservation and tax efficiency.

There is a bond for every investor and every purpose. You can invest in bonds irrespective of your age and investment portfolio size. Bonds can help you with capital preservation, capital growth, tax efficiency, income generation, and general financial portfolio diversification. For example, government bonds can help you preserve your capital, corporate bonds might be better for growing wealth, coupon-paying bonds can provide steady payouts, and tax-free bonds suit those looking for tax benefits.

In India, authorized brokers, stock exchanges, banks, and online investing platforms focused on fixed-income assets are the places to buy bonds.
You can choose your method based on your goals, convenience, range of options, etc. Try to evaluate the characteristics of the bond before investing through any platform.

Buying bonds online is convenient, quick, and transparent. You can access a wide range of options, compare returns, and evaluate issuers in one place.
Online platforms provide detailed insights, enable secure transactions, and offer flexible investment choices, making it easier to invest in bonds. Additionally, you save time and effort by managing your investments seamlessly from anywhere, with expert support often available to guide your decisions.

Investing in bonds is generally considered a safe option, as they are less volatile than stocks. However, safety depends on the issuer’s creditworthiness and the type of bond. Government bonds are considered the safest, while corporate bonds may carry slightly higher risks but offer better returns.